SEC Strategic Plan 2014 - 2018, Draft for Comment

1 Planning for the Future Strategic plan U . S . S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n F I S C A L Y E A R S 2 0 1 4 2 0 1 8 D R A F T F O R C O M M E N T [ Draft ] I This document presents the Securities and Exchange Commission s Strategic plan prepared in accordance with the Government Performance and Results Act Modernization Act of 2010. The plan sets out the Commission s mission, vision, values, and Strategic goals for fiscal years 2014 through 2018. Furthermore, it discusses the SEC s environment, details the Strategic objectives the Commission seeks to achieve, presents the strategies and initiatives that will be undertaken to accomplish those objectives, and lists the performance goals that will be used to gauge the agency s progress.

2 Comments on this Strategic plan should be directed to [ Draft ] II Mission, Vision, and Values .. 1 Strategic Goals and Strategic 2 Environmental Perspective and 3 5 Strategic Goal 1: Establish and maintain an effective regulatory environment .. 6 Strategic Goal 2: Foster and enforce compliance with the federal securities 16 Strategic Goal 3: Facilitate access to the information investors need to make informed investment decisions .. 26 Strategic Goal 4: Enhance the Commission s performance through effective alignment and management of human, information, and financial 31 Program 39 [ Draft ] 1 The Securities and Exchange Commission is an independent federal agency established pursuant to the Securities Exchange Act of 1934 (Exchange Act).

3 It is headed by a bipartisan five-member Commission, comprised of the Chair and four Commissioners, who are appointed by the President and confirmed by the Senate. The Chair is responsible for the executive and administrative functions of the Commission. The SEC employs over 3,700 people. Mission The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. Vision The SEC strives to promote a securities market that is worthy of the public s trust and characterized by: Transparent disclosure to investors of the risks of particular investments; Oversight of key market participants, including exchanges, brokers and dealers, municipal advisers, and others; Focus on strengthening market structure and systems; Promotion of disclosure of market-related information; Protection against fraud and abuse; and Evaluation, development and maintenance of appropriate rules and regulations.

4 Values Integrity: As the SEC is the independent federal agency entrusted with regulating and conducting enforcement for the securities markets, each member of the Commission s workforce has a responsibility to demonstrate the highest ethical standards to inspire confidence and trust. Commitment to Excellence: The SEC is committed to the highest standards of excellence in pursuit of it s mission. The investing public and the securities markets deserve nothing less. Accountability: The SEC embraces the responsibility with which it is charged. In carrying out its mission, SEC employees hold themselves accountable to the public and take responsibility for achieving SEC goals.

5 Effectiveness: The SEC strives to work creatively, proactively, and effectively in assessing and addressing risks to the securities markets, the public, and other market participants. The staff is committed to finding innovative and flexible approaches to the SEC s work and using independent judgment to explore new ways to fulfill the SEC s mission in the most efficient and effective manner possible. Teamwork: The SEC recognizes that its success depends on a diverse, coordinated team committed to the highest standards of trust, hard work, cooperation, and communication. The staff is committed to working together and coordinating effectively with investors, business, governments, and other organizations in the and abroad.

6 Fairness: The SEC treats investors, market participants, and others fairly and in accordance with the law. As an employer, the SEC seeks to hire and to retain a skilled and diverse workforce, and to ensure that all decisions affecting employees and applicants are fair and ethical. [ Draft ] 2 Strategic Goals and Strategic Objectives Strategic Goal 1: Establish and maintain an effective regulatory environment Strategic Objective : The SEC establishes and maintains a regulatory environment that promotes high-quality disclosure, financial reporting, and governance, and that prevents abusive practices by registrants, financial intermediaries, and other market participants.

7 Strategic Objective : The SEC promotes capital markets that operate in a fair, efficient, transparent, and competitive manner, fostering capital formation and useful innovation. Strategic Objective : The SEC adopts and administers regulations and rules that are informed by robust economic analysis and public Comment and that enable market participants to understand clearly their obligations under the securities laws. Strategic Objective : The SEC engages with a multitude of stakeholders to inform and enhance regulatory activities domestically and internationally. Strategic Goal 2: Foster and enforce compliance with the federal securities laws Strategic Objective : The SEC fosters compliance with the federal securities laws.

8 Strategic Objective : The SEC promptly detects and deters violations of the federal securities laws. Strategic Objective : The SEC prosecutes violations of federal securities laws and holds violators accountable through appropriate sanctions and remedies. Strategic Goal 3: Facilitate access to the information investors need to make informed investment decisions Strategic Objective : The SEC works to ensure that investors have access to high-quality disclosure materials that facilitate informed investment decision-making. Strategic Objective : The SEC works to understand investor needs and educate investors so they are better prepared to make informed investment decisions.

9 Strategic Goal 4: Enhance the Commission s performance through effective alignment and management of human, information, and financial capital Strategic Objective : The SEC promotes a results-oriented work environment that attracts, engages, and retains a technically proficient and diverse workforce, including leaders who provide motivation and Strategic direction. Strategic Objective : The SEC encourages a collaborative environment across divisions and offices and leverages technology and data to fulfill its mission more effectively and efficiently. Strategic Objective : The SEC maximizes the use of agency resources by continually improving agency operations and bolstering internal controls.

10 [ Draft ] 3 Environmental Perspective & Outlook The SEC s goals and priorities are influenced by a number of external environmental factors, including the demands of fulfilling its mission in an increasingly complex and globally interconnected securities market and the statutory structure within which the Commission works. In recent years, this environment has changed dramatically. While this Strategic plan attempts to anticipate various ways in which the markets, regulated industries and legislative requirements may evolve over time, no plan can anticipate all possible scenarios.